SAN DIEGO, June 7 /CNW/ -- QUALCOMM Incorporated (Nasdaq: QCOM), a
leading developer and innovator of Code Division Multiple Access (CDMA) and
other advanced wireless technologies, today stated that it is extremely
disappointed with the International Trade Commission (ITC) decision to ban the
import of future models of 3G mobile broadband handsets incorporating QUALCOMM
chipsets and software accused of infringing a Broadcom patent. Although all of
the Commissioners agreed that a disruption in the supply of EV-DO and WCDMA
handsets would negatively impact the public interest and public safety, the
remedy fashioned by the majority does not protect the public interest or
public safety. QUALCOMM will ask the Federal Circuit Court of Appeals to stay
enforcement of the ITC's order and ask the President to veto the ITC's
decision. QUALCOMM maintains that Broadcom's patent is invalid and not
infringed.
Having chosen not to develop an EV-DO solution and having failed in the
marketplace to generate interest in its WCDMA products, Broadcom brought this
litigation against QUALCOMM but has used it as a vehicle to attack the U.S.
cellular industry, even though Broadcom has never accused any wireless
manufacturers or operators of infringement or any other wrongdoing. The
public injury that would result from the remedy imposed by the Commission is
grossly disproportionate to any benefit flowing to Broadcom from such broad
enforcement of a recently-purchased patent. Broadcom does not make or sell
EV-DO chips, and Broadcom's claims that it can supply WCDMA products for the
United States have been rebuffed by WCDMA operators in submissions the
operators made to the ITC.
QUALCOMM and the U.S. wireless industry will seek an emergency stay from
the Federal Circuit and a Presidential veto of the ITC's ruling on several
grounds, including that Broadcom's ITC action will harm U.S. consumers, impact
public safety and national security and harm the U.S. economy by stunting
mobile broadband deployment. By punishing completely innocent cellphone
manufacturers and wireless operators that were given no opportunity to contest
Broadcom's infringement claims, the ruling also raises serious issues of due
process and fairness. In addition, QUALCOMM and its partners have invested
heavily in providing products that enabled E911 emergency call centers to
locate wireless subscribers. Affordable new phone designs, which further
improve the performance and accuracy in emergency situations, will be impacted
by this order.
"While there is no immediate disruption to QUALCOMM's ability to import
chips, this decision does immediately affect third parties who were not even
permitted to appear in the infringement proceeding," said Dr. Paul E. Jacobs,
CEO of QUALCOMM. "We believe the Commission has not afforded manufacturers
and operators, who will bear the brunt of this order, an adequate opportunity
to defend their interests. In declining to ban existing products, the
Commission recognized the adverse impact of a downstream remedy to the public
interest, but decided on a measure that will limit consumer choice and access
to mobile broadband services, be harmful to operators, manufacturers and the
economy, and pose risks to public safety communications. The Commission's own
chairman declared that the order would adversely affect the public interest.
We will ask the White House to veto this decision and avoid turning back the
clock on the tremendous gains that have been achieved in mobile broadband
communications, disaster preparedness and emergency response. The wireless
industry and public safety community have been working on robust interoperable
networks for first responders and this order derails those efforts. A
seamless, interoperable public safety mobile broadband network is integral to
the next generation of emergency response. The way for the industry, public
safety and end users to move forward with certainty is for the President to
veto this order."
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and
delivering innovative digital wireless communications products and services
based on CDMA and other advanced technologies. Headquartered in San Diego,
Calif., QUALCOMM is included in the S&amp;P 500 Index and is a 2007 FORTUNE 500(R)
company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.
Except for the historical information contained herein, this news release
contains forward-looking statements that are subject to risks and
uncertainties, including the Company's ability to successfully design and have
manufactured significant quantities of CDMA components on a timely and
profitable basis, the extent and speed to which CDMA is deployed, change in
economic conditions of the various markets the Company serves, as well as the
other risks detailed from time to time in the Company's SEC reports, including
the report on Form 10-K for the year ended September 24, 2006, and most recent
Form 10-Q.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. All other
trademarks are the property of their respective owners.
QUALCOMM Contacts:
Emily Kilpatrick, Corporate Communications
Phone: 1-858-845-5959
Email: corpcomm@qualcomm.com
John Gilbert, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com